AirAsia is selling a quarter share in an Asian joint venture with Expedia back to the online travel company for $86.3 million.
This will increase Expedia’s total ownership in the joint venture to 75%. AirAsia has also amended certain unspecified additional agreements with Expedia.
The low cost carrier’s chief executive Tony Fernandes said: “We started the JV with Expedia back in 2011 and together, we’ve built a fantastic business.
“The vision of marrying Expedia, a globally recognised and highly regarded travel agency, with the AirAsia group network has yielded a significant return in just over three years.”
He added: “We remain committed as partners as Expedia continues to develop in this region, and this agreement will simultaneously allow for the AirAsia group to further develop and diversify its distribution network.
“We look to further maximise sales opportunities as we make our inventory available across multiple sales channels and geographies.
“Identifying and working with the best partners allows us to continuously offer innovative products and solutions to our guests, further solidifying our position as market leaders.
“This is in line with our strategy of early equity investment in adjacent businesses that have strong synergies with AirAsia across the travel value chain.”
The sell-off coincided with the long haul budget airline AirAsia X announcing a 34% rise in passenger carryings to 4.2 million in 2014.
“Load factor for the full year remains healthy at 82% despite challenging market conditions,” the AirAsia Group offshoot said.
The long haul business is separate from the one which suffered the crash of an aircraft flying between Surabaya in Indonesia to Singapore with the loss of 155 passengers and seven crew on December 28.